NE Property, a wholly owned subsidiary of European real estate company Nepi Rockcastle, has successfully closed a €500 mln unsecured green bond.
The green bond, maturing in January 2032, offers a fixed interest rate of 4.25% and an issue price of 99.124%.
The green bond was met with strong investor demand, exceeding the initial target by over €3 bn. The bond offering was widely distributed among institutional investors, with 87% of the total sold to asset managers and the remaining 13% purchased by other types of institutional investors and banks. Demand for the bond came from a diverse range of geographies, including the UK (59%), DACH region (10%), France (9%), and Benelux (7%).
The proceeds from the bond offering will be used to finance or refinance green projects within Nepi Rockcastle's property portfolio. These projects align with the company's Green Finance Framework and contribute to its climate impact mitigation goals.
Eliza Predoiu, CFO, commented: ‘The strong market response, translated into an oversubscription of over €3 bn, stands as a solid confirmation of investors’ confidence in our credit quality and sustainability strategy. Such market demand demonstrates both a consistent support for our environmental and growth commitment, as well as good understanding and appreciation of Nepi Rockcastle’s achievements and results. It is our commitment to leverage on this bond issuance towards growing our portfolio in a sustainable way, alongside clear and ambitious climate impact mitigation objectives.’
Deutsche Bank, Raiffeisen Bank International, SMBC, Société Générale, and UniCredit acted as joint lead managers for the bond issuance.
